Michael Saylor criticizes on-chain proof of reserves, highlights risks
- Michael Saylor condemns on-chain proof of reserves
- Bitcoin security strategy prioritizes traditional audits
- Strategy accumulates 580.250 BTC under audit by the Big Four
During a side event at the Bitcoin 2025 conference in Las Vegas, Strategy co-founder and CEO Michael Saylor called publishing on-chain proof of reserves a “bad idea.” The executive warned that this practice, adopted by several companies after the FTX crash, could seriously compromise the security of institutions and investors.
I asked @saylor if @MicroStrategy has any plans to publish on-chain proof of reserves
His answer will SHOCK you
“It’s a bad idea.”
– Security Risk
– Irrelevant without also having Big 4-audited liabilitiesCheck it out 👇 pic.twitter.com/tIxUckgbEp
— Mitchell ✝️🇺🇸 (@MitchellHODL) May 27, 2025
Saylor believes that making bitcoin wallet addresses public is tantamount to disclosing confidential and sensitive information. He says this opens the door to transaction tracking, cyberattacks, and surveillance by malicious actors. “You publish your wallet, and it becomes an attack vector for hackers, government agents, and every kind of troll imaginable,” he said.
While acknowledging the importance of transparency in the cryptocurrency sector, Saylor argues that on-chain proof of reserves ignores a crucial point: liabilities. “If you really want security in cryptocurrencies, my suggestion is to buy bitcoin and self-custody your bitcoins,” he said. In the case of institutional investors, he reinforces that the most important thing is the formal validation of assets and liabilities by independent auditors.
In Saylor’s view, the most reliable way to prove reserves is through audits conducted by Big Four companies, with reports signed by legally responsible executives. “It’s much better than simply having a proof-of-reserves portfolio,” he said.
Still, the executive said he was open to the possibility of using zero-knowledge proofs, as long as addresses remain private and are approved by all parties involved. Even so, he said, the lack of information about liabilities would still be a serious flaw.
On the same occasion, Strategy announced the purchase of an additional 4.020 BTC for approximately $427,1 million, increasing its accumulated total to 580.250 bitcoins. The position is equivalent to more than 2,7% of the total BTC supply, acquired for an average value of $69.979 per unit, and currently valued at more than $63,5 billion.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Trump’s Tariffs Ruled Illegal, Markets Breathe a Sigh of Relief
Elon Musk wraps up White House role, affirms DOGE’s ongoing journey
Share link:In this post: Elon Musk stepped down as head of DOGE because he reached the legal work limit. Musk said DOGE saved $175 billion, but some people questioned the real savings. Musk wants to focus on Tesla and SpaceX now and leave politics behind.
XBTO attains UAE license to offer digital asset custody and investment services
Share link:In this post: XBTO license in the UAE will allow it to offer crypto investment and custody services. The company is also seeking a license in the UK. XBTO was a participant in Abu Dhabi’s Hub71.

Bitget Adds B/USD1 Trading Pair. Come and grab a share of 80,428 B!
Trending news
MoreCrypto prices
More








